Thursday, June 24, 2010
Bid For Capital Outlay Notes Goes To Outside Source
Lawrenceburg City Administrator William McLain said Thursday that, although the Board of Mayor and Council had hoped to borrow capital outlay notes through a local lending institution, the lowest bid was received from an outside source.
During a recent meeting of the council, members voted to borrow tax anticipation notes not to exceed $1,985,000 in order to fund various capital projects and meet equipment needs for the city for the 2010-2011 fiscal year.
At the time the resolution was approved, council members had not yet determined what the interest rate on the monies would be.
During a meeting of the council Thursday morning, McLain indicated the lowest bid from a local bank came in with an interest rate of 4.70% for a ten-year period. An outside source, First Tennessee Bank, he said, offered to lend the funds at an interest rate of 3.68%. Accepting the lower bid, McLain said, would save the city a total of $136,000 over the life of the loan.
At this point, the council is awaiting approval from the Tennessee Comptroller’s Office in order to proceed with the borrowing of the funds.
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